Lending
Guidelines and information on Lending with Lendasat
Why should I lend on Lendasat?
If you're looking for a way to earn a guaranteed yield while supporting the future of decentralized lending, Lendasat offers an ideal platform.
With fixed-term contracts, you’re assured a guaranteed return. Whether the borrower repays early, gets liquidated, or fails to repay on time, you will always receive your principal and interest as agreed. This provides you with predictable, stable returns on your lending activity.
Our platform is entirely open and market-driven, meaning you have control over the terms of your loans, including the Loan-to-Value (LTV) ratio, interest rates, and duration. By lending during the beta phase, you're actively contributing to the improvement of the product and the refinement of the user experience.
By lending on Lendasat, you’re not only providing liquidity to borrowers but also helping shape the future of peer-to-peer loans: Your participation is key in moving Lendasat towards its fully public, counterparty risk-free version.
Which Stable Coins can I lend on Lendasat?
Please note that if a borrower selects the Virtual Card option, it is currently only compatible with USDC on the Polygon network. As a result, if you lend USDT or USDC on a different network, borrowers using the Virtual Card will not be able to see or access your loan offers.
On Lendasat, you can lend USDC and USDT across multiple blockchain networks, including Polygon, Ethereum, Solana and Starknet, giving you flexibility in where you provide liquidity.
We recently added fiat loans too! Currently in evaluation phase
On which blockchain networks can I lend using Lendasat?
You can lend USDC and USDT on Lendasat on Polygon, Ethereum, Solana, and Starknet and Liquid Network.
How is the interest rate (APR) determined for my loan offer?
When setting up your loan offer, you’ll specify the interest rate (APR) that the borrower will be charged. The APR is always expressed on an annualized basis. However, the actual interest you receive as a lender depends on the loan duration. Regardless of whether the loan is repaid early or at the end of the term, you will receive the agreed-upon interest for the full duration of the contract as originally specified.
How can I specify the amount I want to lend on Lendasat?
When creating a loan offer, you can select a range of loan amounts you’re willing to cover, such as "$100-500", "$ 1000-5000", or "$5000-10000"—it’s entirely up to you.
For example, if you want to cover loans ranging from $1000 to $5000 and have $50,000 to dedicate to this offer, you can set that amount as your reserve. This means that you’re willing to lend up to $ 50,000 within the specified range for all requests under that offer.
How do I specify the loan duration I want to offer on Lendasat?
When setting up a loan offer, you can choose the duration range in months that suits your preferences, such as '1-3 months,' '3-6 months,' or '6-12 months'—the choice is entirely up to you.
This flexibility lets you align your lending strategy with your preferred loan terms while ensuring your capital is dedicated to the durations you’re comfortable with.
How will I receive the repayment of the loan?
As a lender, you will receive the repayment directly from the borrower, in the stablecoin and blockchain network agreed upon at the start of the loan. Lendasat does not hold or manage the funds; the borrower will send both the principal and interest directly to you.
The repayment must be made in a single transaction for the full amount (principal + interest), and the transaction hash will be provided for you to verify the repayment.
What happens if the borrower gets liquidated?
If the borrower’s collateral is liquidated, you will receive the full repayment of your loan, including both the principal and the full interest. The liquidation process ensures that the lender's position is protected and that the loan is fully repaid, even if the borrower defaults or fails to maintain the required Loan-to-Value (LTV) ratio.
It is up to you, the lender, to choose how you want to handle the liquidation. You can either:
- Receive Bitcointo cover the full principal and interest of the loan, or
- Liquidate the collateral into stablecoin(on the same blockchain network originally agreed upon) to receive the repayment in stablecoin instead.
Lendasat's platform is designed to safeguard the interests of lenders and ensure that loans are repaid under the fixed terms, even in the event of liquidation.
What happens if the borrower repays before the end of the contract?
If the borrower repays the loan before the end of the contract, you, as the lender, will still receive the full agreed-upon principal and interest for the entire duration of the loan, as initially set out in the terms.
Since Lendasat contracts are fixed-term, early repayment by the borrower does not alter the original terms of the loan, including the interest rate and loan duration. You will be compensated for the entire agreed period, regardless of when the borrower repays.